124. The Boyceville Machining Company provided you with the following information for the
fiscal year ended December 31.
Required:
(a) Compute the total manufacturing costs incurred during the year.
(b) Compute the total work-in-process during the year.
(c) Compute the cost of goods manufactured during the year.
(d) Compute the cost of goods sold during the year.
125. Finkler Retail has collected the following information for May:
Required: Prepare an income statement for the month of May
126. Fowler Retail has collected the following information for August:
Required: Prepare an income statement for the month of August.
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127. Sid Freeman has developed a new electronic device that he has decided to produce and
market. The production facility will be in a nearby industrial park which Sid will rent for $4,000 per
month. Utilities will cost about $500 per month. He will use his personal computer, which he
purchased for $2,000 last year, to monitor the production process. The computer will become
obsolete before it wears out from use. The computer will be depreciated at the rate of $1,000 per
year. He will rent production equipment at a monthly cost of $8,000. Sid estimates the material
cost per finished unit of product to be $50, and the labor cost to be $10. He will hire workers, and
spend his time promoting the product. To do this he will quit his job which pays $4,500 per month.
Advertising will cost $2,000 per month. Sid will not draw a salary from the new company until it
gets well established.
Required:
Complete the chart below by placing an “X” under each heading that helps to identify the cost
involved. There can be “Xs” placed under more than one heading for a single cost; e.g., a cost
might be a sunk cost, an overhead cost, and a product cost. There would be an “X” placed under
each of these headings opposite the cost.
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128. A manufacturing company, has provided the following data for the month of May:
Raw materials purchased during May totaled $69,000 and the cost of goods manufactured totaled
$146,000.
Required:
a. What was the cost of raw materials used in production during May? Show your work.
b. What was the cost of goods sold for May? Show your work.
129. During the month of January, Fisher Corporation, a manufacturing company, purchased
raw materials costing $76,000. The cost of goods manufactured for the month was $129,000. The
beginning balance in the raw materials account was $26,000 and the ending balance was $21,000.
The beginning balance in the finished goods account was $52,000 and the ending balance was
$35,000.
Required:
a. What was the cost of raw materials used in production during January? Show your work.
b. What was the cost of goods sold for January? Show your work.
130. A partial listing of costs incurred at Rust Corporation during August appears below:
Required:
a. What is the total amount of product cost listed above? Show your work.
b. What is the total amount of period cost listed above? Show your work.
131. Machowski Corporation has provided the following partial listing of costs incurred during
November:
Required:
a. What is the total amount of product cost listed above? Show your work.
b. What is the total amount of period cost listed above? Show your work.
a. Product costs consist of direct materials, direct labor, and manufacturing overhead:
132. In October, Ringler Corporation had sales of $273,000, selling expenses of $26,000, and
administrative expenses of $47,000. The cost of goods manufactured was $183,000. The
beginning balance in the finished goods inventory account was $45,000 and the ending balance
was $34,000.
Required:
Prepare an Income Statement in good form for October.
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133. In July, Neidich Inc., a merchandising company, had sales of $295,000, selling expenses of
$24,000, and administrative expenses of $29,000. The cost of merchandise purchased during the
month was $215,000. The beginning balance in the merchandise inventory account was $25,000
and the ending balance was $30,000.
Required:
Prepare an Income Statement in good form for July.
134. A number of costs and measures of activity are listed below.
Required:
For each item above, indicate whether the cost is MAINLY fixed or variable with respect to the
possible measure of activity listed next to it.
135. A number of costs and measures of activity are listed below.
Required:
For each item above, indicate whether the cost is MAINLY fixed or variable with respect to the
possible measure of activity listed next to it.
136. A number of costs are listed below.
Required:
For each item above, indicate whether the cost is direct or indirect with respect to the cost object
listed next to it.
137. The following data relates to the Sunshine Company:
Required: Calculate direct materials purchased, direct labor costs, and cost of goods sold.
138. A computer virus destroyed some of the accounting records for Hampton Furniture
Company for the periods of 2008-2010. The following information was salvaged from the computer
system.
Required: Determine the correct amounts for A through P.
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139. Dave’s Lighting Inc. produces lamps. During 2012, the company incurred the following
costs:
Inventories for the year were:
Required: Prepare a statement of cost of goods manufactured and cost of goods sold.
140. Explain the difference between an outlay cost, and expense, and an opportunity cost.
141. Explain the difference between a cost, a cost object, and a cost pool.
142. Explain the difference between direct materials inventory, work in process inventory,
finished goods inventory and cost of goods sold.
143. Explain the difference between cost of goods manufactured and cost of goods sold.
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144. Explain the difference between a direct cost and an indirect cost.
145. The following information applies to the Johnson Tools Company for the year ended
December 31, 2010:
Required: Prepare a statement of cost of goods manufactured and an income statement for the
year ended December 31, 2010